Wednesday, May 19, 2010

When someone like me calls for banning the sorts of predatory financial practices that lead to the destruction of nations, it is a voice in an obscure corner of the blogosphere. When Angela Merkel calls for an end to naked short selling, it is the voice of perhaps the most conservatively organized economy on earth.

So naturally, the Predators are howling mad. First, it's a blunder. Anything that hurts the precious market must be, at least, a mistake, ya know.

Stocks HAMMERED After Germany's Giant Blunder: Here's What You Need To Know

Joe Weisenthal | May. 18, 2010, 4:00 PM

Stocks were wobbly all morning, but the situation in the eurozone went from uneasy confidence to nervousness in the blink of an eye after the German government idiotically announced a temporary emergency naked short-selling ban. It applies to certain bank stocks, and the new regulations will also go after bond and currency speculators. Naturally,t he move is being re as a gigantic no-confidence move.

But first, the scoreboard:

Dow: -115

S&P 500: -16

NASDAQ: -37

And now for some key stories:

Story #1 is Germany's short-selling regulations. The ramifications of this move will certainly be felt overnight, and possibly for some time to come. more

And of course, this move against the predators is just protecting the weak from the judgments of the markets.

The 10 German Banks That Angela Merkel Thinks Need Special Protection From Speculators

Gregory White | May. 18, 2010, 5:32 PM

Germany announced a ban on naked short selling today, that takes effect at 12 AM Berlin time. Chancellor Angela Merkel has come under criticism for the decision, which is now set to hamper those who seek to speculate on German and European markets. more

And of course, the quite sensible move against naked short selling which is, after all, a cute name for counterfeiting, has conclusively demostrated the Merkel has bcome unhinged. Oh and a populist (the horror!)

Does This Woman Have Any Idea What She's Doing?

Gregory White | May. 18, 2010, 1:58 PM

German Chancellor Angela Merkel has gone on a populist attack against speculators by proposing a ban on naked short selling and CDS trading on a select set of securities.

That ban would impact European government bonds and 10 select German financial institutions within the eurozone.

The ban is being proposed by Finance Minister Wolfgang Schaeuble.

This move comes in the context of a German public severely displeased with the decision to bailout the fringe eurozone states at their own expense. Domestically, West Germans already support the eastern half of their country, which was reunified in 1990. Under the European Union, German taxes also subsidize development projects in other European countries.

The burden of the Greek bailout seems a step too far for many, particularly a center-right government under Chancellor Andrea Merkel.

Now her government has decided short sellers and CDS speculation will end on European government debt and German financials. more

It's a sign that the Germans--who after all are revolting against the idea that they must bail out the Euro because they are the only one with deep pockets left--have become massively incompetent. You almost have to admire the unmitigated gall of Predator thinking.

German Political And Financial Leaders Have Taken Incompetence To A New Level

Joe Weisenthal | May. 18, 2010, 9:22 PM | 1,227 | 21

Dow Off Triple Digits, As German Short-Selling Restrictions Officially Go Into Effect Until 3/31/2011

Today was dominated by the news that Germany planned to institute an emergency naked short-selling ban, a move that sent the euro and the stock market into a tailspin.

Of course, this is not the first time German leaders have deserved finger-pointing.

It was the fault of Angela Merkel that the Greece crisis was allowed to metastasize, feeding on her no-bailout bluff.

The sharpest take comes from BTIG's Mike O'Rourke, who sees political incompetence being taken to an art:

Over the past several months, (Finance Minister Wolfgang) Schaeuble has demonstrated an uncanny ability to send both the Euro and the Equity markets swooning. Evidently, Schaeuble is not fond of those Sunday night announcements that were commonplace here in the U.S. in the fall of 2008. You know, the ones designed to be made while all markets were still closed so investors had the opportunity to digest the news. To top it all off, nearly 3 hours after spooking the markets and sending the Euro to a new 4 year low, Schaeuble try to reassure markets that the Euro is a “stable” currency. All in a day’s work. more